Pre-Qualify for a Mortgage in Minutes

• Down Payment​

• Employment History

• Income

• Credit History

• Debts

• Property Value

• Proof of Identity

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Down Payment​

• If down payment is less than 20% then mortgage default insurance is required. This is referred to as a high-ratio mortgage or insured mortgage.

  • There are 3 insurers in Canada. CMHC, Sagen and Canada Guaranty

  • Mortgage default insurance is typically added to the overall mortgage amount

• If down payment is 20% or more then mortgage default insurance is not required. This is referred to as a conventional mortgage or an insurable mortgage.

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The higher down payment, the more equity there is in the home. Therefore it is less risk for a lender when approving the mortgage loan. If down payment is lower, then there might be more risks for a lender to consider.

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Employment History​

When lenders review employment history, they prefer to see a steady employment history. This ensures the borrower has consistent income. Lenders typically prefer applicants who have held the same job or worked in the same field/industry for several years, as this demonstrates income stability.
However, a shorter tenure won’t necessarily disqualify you. Especially if you’ve had steady income over the past year and can show consistent earnings. 

Currently in probation or new employment are reviewed on a case by case basis. There have been many instances that lender has approved the mortgage due to the overall application.

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Self-employment history is also best to have two years history. Lenders do have programs do self-employed applicants with less than 2 years history. They may ask for additional information such as previous income history and work history.

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Income​

When applying for a mortgage, lenders will look at the total "gross income". This is the income you make before taxes and deductions. ​Income sources considered may include employment, overtime, bonuses, commissions, self-employed, dividends, pension, Canada child benefits, disability, etc. Calculation of how the income is calculate may vary.​

Lenders evaluate what portion of your income goes toward housing and compare your current housing costs with those of the home you're planning to buy. The smaller the increase, the stronger your application looks.

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Credit History​

A good credit history is not only determined by a credit score. Credit score is important, however lenders will consider the entire credit report. This includes but is not limited to, length of credit history, how long credit accounts have been active, repayment history, previous closed accounts, outstanding balances and more.

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Debts​

Debts such as auto loans, line of credits, credit cards, spousal support, child support will be included on a mortgage application. Qualification numbers are ran by comparing income and debts to see if income is strong enough to support the existing debts and the new home. Less debts, lower balances or lower debt payments will help with qualifying.

If you're looking to pay off the debts you have, we can help you seek debt consolidation options with the equity in your home.

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Property Value​

When purchasing a home, renewing or refinancing, it is important to ensure that the purchase price is supported by the market value of similar homes. This gives the lender best assurance of recovering the money if a mortgage was to be defaulted and the home needs to be taken and sold. 
In some occasions, a property appraisal may be required.

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Proof of Identity​

Confirming identity is important when taking out any loans. Asking for identification is part of the process, this is to help ensure that no one is using your identity to borrow money or commit fraud.

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